May 31 - The latest building permit numbers have been added to the Tableau charts in the Cromford® Public section of this site.
Year-to-date (at the end of April) we have seen 40% more single family permits than in 2020. The total of 12,815 across Maricopa and Pinal counties is the sixth highest we have seen, but lower than 1999, 2003, 2004, 2005 and 2006.
We are finally back to a "normal level" of single-family permits after 13 consecutive years of low growth.
May 30 - Major changes are happening in new construction as developers adjust to the market conditions. Some builders are now moving away from price lists to auction-style sales. They realize that the re-sale market has been operating that way and achieving higher prices than similar new homes. They are also becoming increasingly reluctant to spend money on buyer's agent commissions, as selling new homes has become more of an exercise in fending off the excess potential buyers. This happened in 2005 too and we see this trend getting stronger. Many have reduced commission from 3% to 2.5% or 2% and most are paying based on the base price without lot premiums and upgrades.
County recordings are showing new homes purchased from builders immediately resold for much higher sums of money, the profit for the first buyer sometimes running into 6 figures.